FBR Capital Thinks Amer Superconductor’s Stock is Going to Recover

By Austin Angelo

FBR Capital analyst Carter Driscoll reiterated a Buy rating on Amer Superconductor (NASDAQ: AMSC) today and set a price target of $9. The company’s shares opened today at $4.28, close to its 52-week low of $3.88.

Driscoll noted:

“REG and naval opportunities are advancing. AMSC delivered F4Q16 revenues of $16.2M and non-GAAP EPS of ($0.51), in line with last month’s preannouncement. We continue to see smart grid opportunities proliferate amid some uncertainty in the resumption of wind shipments to its India partner, Inox Wind. In particular, AMSC discussed progression with ComEd to implement its resilient electric grid (REG) solution for urban electric load sharing, although AMSC does not yet have a contract in hand. We also see progress in the company’s efforts to advance multiple revenue opportunities with the U.S. Navy as the Navy electrifies its surface fleet. Management set out five goals for FY17, which are focused on various smart grid opportunities that should help diversify its customer base and revenue streams.”

According to TipRanks.com, Driscoll is ranked 0 out of 5 stars with an average return of -9.5% and a 35.5% success rate. Driscoll covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Hydrogenics Corp, and Covanta Holding.

Currently, the analyst consensus on Amer Superconductor is Strong Buy and the average price target is $8.40, representing a 96.3% upside.

In a report issued on May 15, Roth Capital also reiterated a Buy rating on the stock with a $10 price target.

The company has a one year high of $10.62 and a one year low of $3.88. Currently, Amer Superconductor has an average volume of 145.5K.

Based on the recent corporate insider activity of 21 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AMSC in relation to earlier this year. Most recently, in February 2015, John Vander Sande, a Director at AMSC sold 5,000 shares for a total of $5,700.

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American Superconductor Corp. is a provider of megawatt-scale solutions. It engages in generating the ideas, technologies and solutions that meet the demand for smarter, cleaner better energy. The company operates through two segments: Wind and Grid. The Wind segment enables manufacturers to field wind turbines with exceptional power output, reliability, and affordability. The Grid segment enables electric utilities and renewable energy project developers to connect, transmit and distribute power with exceptional efficiency, reliability, security and affordability. American Superconductor was founded by Yet-Ming Chiang, David A. Rudman, John B. Vander Sande and Gregory J. Yurek on April 9, 1987 and is headquartered in Devens, MA.